What Is Business Owners Insurance?
Business Owners Insurance Policies combine two essential Commercial Insurance Elements into one package.
A Business Owners Policy combines General Liability & Commercial Property Insurance into one policy.
These policies were designed to take some of the guess work out of a Small Business’s Insurance Planning by not only combining the common elements below (General Liability & Commercial Property Insurance) but also by adding in common additional extras most business owners need!
A General Liability Insurance Policy will help protect you and your business from certain legal actions taken against you (lawsuits). While most companies are not required by law to maintain General Liability Insurance, this coverage is something that every business needs.
A Commercial Property Insurance Policy will protect your the property your business owns. This coverage is generally required by law, but often times a Lender will require this if you have a loan on the property. Commercial Property can be either:
- Business Personal Property
What Does Business Insurance Cover?
While there are two main elements covered under a Business Insurance Policy (Business Property & General Liability), there are a number of additional coverages that can be included on this type of insurance.
Business Owner’s Insurance Policies differ by carrier, but generally the following coverages will either come standard on a Business Policy, or can be endorsed (added) on to the policy.
One of the fastest growing exposures any business faces today is in protecting their business from liability arising from the employing workers.
Employment Practices Liability Insurance (EPLI) protects an employer from employees’ claims alleging suchs things as discrimination, wrongful termination, harassment (including sexual harassment).
EPLI pays for liability damages and defense costs due to these charges brought by full-time, part-time, temporary, seasonal employees, applicants for employment, recognized volunteers, and independent contractors.
This coverage can be endorsed on to most Business Owner’s Policies or Purchased alone.
Data Breach Response Coverage
- Data Breach Services – Consulting Services
- Data Breach Expenses Coverage – Printing, Mailing, Notification Of Affected Individuals
- Legal Expense Coverage – Legal Costs To Review The Personal Data Of The Breach
Data Breach Liability Coverage
- Legal Liability Coverage For Damages Due To Theft Of Loss Of “Personal Information (PII)”
- Defense & Settlement Costs
- Protects Against Theft Of Money, Securities, Business Personal Property Through Computer Fraud
Electronic Data Processing Equipment
- Comprehensive Perils Including Virua, Mechanical Breakdown, And Electrical Breakdown For Computers, Printers, Media And Data.
Identity Recovery (Owners & Employees)
- Covers Recovery Services For Owners And Employees Who May Have Suffered An Identity Theft In Relation To The Business
When a business is damaged (example: the office building burns down), it suffers more than a physical loss to its property.
Employees may not be able to work, customers may be forced to purchase from a competitor because you can not supply the products or services they need, so there is a loss of income.
There may also be certain expenses that remain even though your business has temporarily shut down.
Without Loss of Income / Business Interruption Coverage, you are not protected.
Many small businesses do not own any automobiles.
However, the company still has a huge liability exposure with regard to automobile liability.
Hired Auto Coverage
Hired Auto Coverage extends liability protection from the business’ auto policy to vehicles that the business may need to rent or “hire” from time to time.
Non-Owned Auto Coverage
Businesses often have employees that must use their personal vehicles as part of their daily business activities. Unless the company’s business auto insurance is endorsed to include Non-Owned Auto Coverage, the business would not have coverage should that employee get in accident and injure someone during the course of his/her business activity.
Many businesses (especially retail stores) receive or keep a certain amount of money and/or securities on the business premises.
These same businesses will then take those same securities off their business premises (to take to the bank for deposit).
Without endorsing your business insurance policy for money and securities, you will have no coverage in the event that that money and securities are stolen.
While every business owner tries to hire the very best employees, there are times when your employees may choose to steal from you.
The business owners insurance policy can be endorsed to cover the dishonest acts of your employees.
Here is a list of common Business Insurance Extensions and Endorsement Of Coverages.
(This is not a all inclusive list and may vary by insurance carrier.)
- Accounts Receivable
- Arson Reward
- Building Ordinance of Law
- Check Forgery
- Electronic Data Processing Equipment (EDP)
- Peak Season Coverage
- Mechanical & Electrical Breakdown
- Professional Liability
How Much Does Business Insurance Cost?
The cost of a Business Owner’s Policy can vary greatly.
Most carriers have an annual minium premium between $350 – $750
How Are Business Owner’s Policies Rated?
- Location Of Business
- Type Of Business (what does the business do)
- Number Of Employees
- Annual Revenue
- Annual Payroll
- Amount of Business Property Coverage (Building And/Or Business Personal Property)
- Loss History
These factors are the base rating factors.
Your premium will also be increased given the Additional Coverages & Endorsements you choose to add to you policy.